Home / MARKETS / Venezuela wants to launch a cryptocurrency backed by oil reserves called the “petro”

Venezuela wants to launch a cryptocurrency backed by oil reserves called the “petro”

Venezuelan President Nicolas Maduro articulates during the IV Gas Exporting Countries Forum (GECF) Summit in Santa Cruz de la Sierra, Bolivia on November 24, 2017. AIZAR RALDES/AFP/Getty Fetishes

  • Venezuelan President Nicolas Maduro announced the launch of a cryptocurrency recruited the “petro” backed by oil reserves.
  •  Few specifics were given about the currency hurl or how the struggling OPEC member would create the crytocurrency.
  • Maduro told the petro will help Venezuela recover financially after the US levied sanctions. 

CARACAS (Reuters) – Venezuelan President Nicolas Maduro looked to the beget of digital currency to circumvent U.S.-led financial sanctions, announcing on Sunday the set afloat of the “petro” backed by oil reserves to shore up a collapsed economy.

The leftist kingpin offered few specifics about the currency launch or how the struggling OPEC fellow would pull off such a feat, but he declared to cheers that “the 21st century has succeeded!”

“Venezuela will create a cryptocurrency,” backed by oil, gas, gold and diamond put asides, Maduro said in his regular Sunday televised broadcast, a five-hour showcase of Christmas airs and dancing.

The petro, he said, would help Venezuela “advance in numbers of monetary sovereignty, to make financial transactions and overcome the financial blockade.”

Adversary leaders derided the announcement, which they said needed congressional accept, and some cast doubt on whether the digital currency would perpetually see the light of day in the midst of turmoil. The real currency, the bolivar, is in freefall, and the fatherland is sorely lacking in basic needs like food and medicine.

Serene, the announcement highlights how sanctions enacted this year by U.S. President Donald Trump’s furnishing are hurting Venezuela’s ability to move money through international banks.

Washington has levied sanctions against Venezuelan officials, PDVSA number ones and the country’s debt issuance.

Sources say compliance departments are scrutinizing agreements linked to Venezuela, which has slowed some bond payments and intricate certain oil exports.

Maduro’s pivot away from the U.S. dollar thrives after the recent spectacular rise of bitcoin, which has been fueled by stamps that the digital currency is slowly gaining traction in the mainstream investment Terra.

The announcement bewildered some followers of cryptocurrencies, which typically are not backed by any authority or central banks. Ironically, Venezuela’s currency controls in recent years fool spurred a bitcoin fad among tech-savvy Venezuelans looking to bypass conducts to obtain dollars or make internet purchases.

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